Sale Of S Corporation Stock

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  • tonia2021
    Senior Member
    • Mar 2007
    • 119

    #1

    Sale Of S Corporation Stock

    Where does the sale of s corp stock show up on the K-1? One individual is purchasing 100% of the stock from the prior two owners. Does this transaction show up on their K-1?
  • veritas
    Senior Member
    • Dec 2005
    • 3290

    #2
    The sale of

    corporate stock does not show up on the K-1.

    The selling shareholder reports the sale on Sch D.

    The shareholders purchasing the stock increase their basis.

    Are you preparing the corporate return?

    Comment

    • tonia2021
      Senior Member
      • Mar 2007
      • 119

      #3
      Just wondering if this is a property distribution on the K-1. Or, is the prior owner responsible for reporting the sale?

      Comment

      • veritas
        Senior Member
        • Dec 2005
        • 3290

        #4
        There is no

        property distribution. The sale occurs outside the corporation. The selling shareholder reports the sale of stock on Sch D.

        Comment

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